Carriers report challenges with pace of change and innovation needed to remain competitive
The need to continually adapt and innovate to compete in the critical illness insurance market is both a trend and a challenge for voluntary carriers, according to Eastbridge’s new Voluntary Critical Illness Products Spotlight™ Report.
“The demand for critical illness coverage was already increasing before the emergence of COVID-19, but its value has been magnified in light of the pandemic,” said Nick Rockwell, Eastbridge president. “Keeping up with the growing demand to add new covered conditions with higher benefit amounts while still keeping pricing low and offering guaranteed issue underwriting creates a complex and fast-changing market for carriers to navigate.”
Carriers are making regular revisions to existing critical illness products and several are introducing new products this year to keep up with increased competition and demand, the report shows. About half of participating carriers have been in the critical illness market for less than 10 years, and half of the products profiled have been changed in the last two years, including additional benefits or riders, increased benefit maximums, underwriting changes and pricing adjustments.
The Voluntary Critical Illness Products report includes data from 31 carriers representing 36 voluntary critical illness products. The report reviews the current and future state of the critical illness marketplace and existing products so carriers can better understand the market opportunities and how their products compare to the competition. Key topics covered include product structure, benefits, underwriting and eligibility guidelines, differentiators and trends.
Other key findings in the report include:
About Eastbridge Consulting Group — Eastbridge Consulting Group, Inc. is a marketing advisory firm serving companies focused on the voluntary/worksite benefits market in the United States and Canada.